Lenovo Group (00992) saw its share price climb more than 4% during trading, last up 4.04% at HK$32.46, with turnover reaching HK$887 million.

At the "AI Investment Summit" held on September 16, Lenovo Group's Senior Vice President and CFO, Zheng Xiaoming, addressed questions regarding the company's net profit targets and comparisons to Dell Technologies. He noted that Lenovo's profit margin expansion has been relatively rapid, and despite industry competition, the company intends to balance growth and profitability moving forward. Over the long term, he expects net profit margins to reach 5%-8%, matching Dell's level.

"Our current market cap is just one-seventh of Dell's, but given our scale and net profit figures, we are clearly undervalued by the market," Zheng stated. Lenovo's recently released first-quarter results showed quarterly revenue up 43% year-on-year to US$26.9 billion, a record high for a single quarter. Adjusted profit attributable to equity holders rose 176% year-on-year to US$1.075 billion, while the adjusted net profit margin stood at 4%.

The company's AI business is growing rapidly with a robust order pipeline. Its AI server backlog has surged from RMB 140 billion in the previous fiscal quarter to RMB 360 billion. AI-related business revenue jumped 60% year-on-year to RMB 63.4 billion, also setting a new historical record.